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A.P. Moller-Maersk has decided to list its drilling unit separately, marking its latest step toward a complete exit from the energy industry.
Copenhagen-based Maersk, which owns the world’s biggest shipping operations and is working on turning itself into a pure transport company, said on Friday that the decision will take effect some time next year.
Maersk shares opened about 4 percent higher in Copenhagen, topping Denmark’s benchmark index of the country’s most-traded stocks.
The 114-year-old firm has been planning a historic break with its conglomerate structure since the summer of 2016. Aside from turning its back on the oil and gas industry following the 2014 slump in prices, Maersk has also sold off shares in Danske Bank and exited a grocery business to focus exclusively on the container transport industry that it dominates.
The Maersk family’s holding company will initially own more than 40 percent of the new listed drilling entity, and has “made a commitment†to continue as a major shareholder, Skou said. The unit is worth about $4.4 billion, according to Bloomberg Intelligence analyst Talon Custer. Maersk cited a consensus view among analysts in February that the unit was valued at about $4.7 billion back then.
Robert Maersk Uggla, the CEO of the holding company, said, “We welcome A.P. Moller-Maersk’s initiative to pursue a demerger of Maersk Drilling and, if concluded, A.P. Moller Holding looks forward to becoming a large shareholder.†(continued on page 2)
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As part of the preparation for the new listing, debt financing of $1.5 billion from a group of international banks has been secured for Maersk Drilling “to ensure a strong capital structure,†the company said.
Bloomberg News reported late Thursday that the deal was imminent after Maersk decided that bids from potential buyers were too low. The company has given itself until the end of this year to exit all energy operations. In 2017, it agreed to sell its oil and gas business, as well as its tanker operations, for almost $10 billion combined. Most of that money was in the form of shares from the Total SA deal.
The Danish company still has a supply-service unit that is marked for divestment. In February, Maersk cited a consensus estimate by analysts that those assets were worth about $600 million.
Maersk Drilling, which employs about 4,000 people, specializes in large rigs that can work in harsh environments. Its fleet includes about 15 jack-up rigs, four semi-submersibles and four drill-ships. Maersk took a $1.75 billion impairment on the unit in November and reclassified it as “discontinued operations,†signaling a sale had moved closer.
The decision to seek a separate listing shows “there hasn’t been significant enough interest from buyers,†Per Hansen, an investment economist at Nordnet, said in an email. “On the other hand, it’s a good signal to ‘clean up’ instead of still having non-core assets lying around as leftovers.â€
Maersk also said it sold a $1.2 billion stake in Total last month, representing just over 19 million shares of the roughly 98 million that the Danish company received as part of the transaction.
Once Maersk Drilling becomes a separate company on the Nasdaq Copenhagen exchange, “a material part of the remaining Total SA shares†will be distributed to Maersk shareholders in the form of cash dividends, share buy-backs or as a distribution of the Total shares directly, the company said on Friday.
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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